It’s always a happy event when a stock you own attains a new all-time high.
Share prices may be driven by all manner of news and events, but the most reliable method to drive a share higher over time is the growth of its underlying business.
Even Warren Buffett quipped that “when the business does well, the stock eventually follows”.
Hence, it makes sense to filter out businesses that possess catalysts that help to grow their earnings and cash flows.
Such businesses will, in time, see their share prices breaking new highs.
Here are four Singapore stocks that have the potential to achieve this milestone.
OCBC (SGX: O39)
OCBC is the second largest Singapore bank with a market capitalisation of around S$68 billion.
The lender provides a comprehensive range of banking, insurance, and investment services to individuals and companies.
OCBC’s share price has done well this year, climbing by 17.4% year-to-date.
The bank’s shares also hit an all-time high of S$15.69 back in September.
OCBC reported a stellar set of earnings for the first half of 2024 (1H 2024).
Total income rose 7% year on year to S$7.3 billion on the back of a 3% year-on-year increase in net interest income to S$4.9 billion.
The group’s net profit came in at S$3.9 billion, up 9% year on year and at a record high.
OCBC declared and paid out an interim dividend of S$0.44, 10% higher than the S$0.40 paid out last year.
The bank remains firmly on track to meet its 2024 targets and expects low single-digit loan growth for the year.
Net interest margin is projected to stay between 2.2% to 2.25%, which is close to 1H 2024’s net interest margin of 2.23%.
The bank also saw its wealth management assets under management rise 2% year on year to S$279 billion with wealth management income climbing 14% year on year to S$2.5 billion.
Should fee and non-interest income stay strong, OCBC could continue to see its net profit hit new highs.
iFAST Corporation Limited (SGX: AIY)
iFAST is a financial technology (fintech) company that operates a platform for the buying and selling of unit trusts, shares, and bonds.
The group saw its share price hit an all-time high of close to S$10 back in September 2021.
The fintech may be the next in line to surpass this all-time high as it reports a strong set of results for the third quarter of 2024 (3Q 2024).
Net revenue climbed 53.4% year on year to S$64 million while operating profit shot up 92.4% year on year to S$21.5 million.
Net profit for 3Q 2024 stood at S$16.8 million, up 97.3% year on year.
The group’s net profit for the first nine months of 2024 of S$47.4 million has already surpassed 2023’s full year profit of S$28.3 million.
iFAST’s assets under administration also reached a new record of S$23.62 billion, up 23.6% year on year.
The group declared an interim dividend of S$0.015 for 3Q 2024, up from the S$0.013 it paid out in the prior year.
Management is confident that the Hong Kong ePension division will be an important growth driver for this year and the next.
The group also expects its digital bank division to become an important growth driver in 2025 and beyond.
Yangzijiang Shipbuilding Holdings (SGX: BS6)
Yangzijiang Shipbuilding, or YZJ, is one of the largest non-state-owned shipbuilding company in China.
The blue-chip group owns four shipyards in Jiangsu province that can produce a broad range of commercial vessels.
YZJ’s share price has soared 62.3% year-to-date and is just slightly off its all-time high of S$2.75.
The shipbuilder reported a sparkling set of earnings for 1H 2024 with possibly more to come.
Revenue increased by 15.3% year on year to RMB 13 billion with gross profit jumping 65% year on year to RMB 3.5 billion.
YZJ’s net profit for 1H 2024 came in at RMB 3.1 billion, up 77.2% year on year.
The group’s order win momentum is impressive, with 1H 2024 order wins at US$8.5 billion, nearly doubling its 2024 target of US$4.5 billion.
The shipbuilder’s order book stood at US$20.1 billion as of 30 June 2024, up 39% from six months ago.
Back in July, YZJ announced a plan to invest approximately RMB 3 billion in capital expenditure over two years to build a new clean energy ship manufacturing base, subject to the completion of a feasibility study.
Two months ago in September, the group acquired a 34% stake in Tsuneishi Zhoushan Group, a subsidiary of Tsuneishi Holdings Inc.
YZJ and Tsuneishi also formed a joint venture to drive decarbonisation in the shipbuilding and maritime industries.
Civmec Ltd (SGX: P9D)
Civmec is an integrated construction and engineering services provider to the energy, resources, infrastructure, and marine sectors.
The group’s share price has surged 42.5% year-to-date and is just shy of its all-time high of S$1.17.
Civmec provided a resilient business update for its fiscal 2025’s first quarter (1Q FY2025) ending 30 September 2024.
Revenue climbed 7.2% year on year to A$262.7 million.
Net profit, however, stay flat year on year at A$15.2 million.
The group saw its net asset value rise by 11.4% year on year to A$0.958.
Its order book stood at A$800 million as of 30 September 2024, slightly below the A$853 million in the previous corresponding period.
Civmec announced the acquisition of Luerssen Australia Pty Ltd, which builds Arafura Class Offshore Patrol Vessels for the Royal Australian Navy.
For the OEM sector, management sees an extensive pipeline of A$2.5 billion of projects.
Around A$10 billion of potential opportunities are being tracked and the group is confident of extending its lead in the defence, maintenance, and infrastructure sectors.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
